Loudeye has announced plans to acquire Activate, a company that provides webcasting services. Loudeye has made several such acquisitions this year, in July snapping up assets of theDial, a Seattle based Internet radio programming that syndicates original programming; and buying Addition Systems, a streamed advertising firm in June.
Commenting on the acquisition, Loudeye chief executive officer John Baker said, “Enterprise streaming is a logical extension of Loudeye’s digital media expertise into a lucrative market on the threshold of accelerated growth. This acquisition will significantly strengthen and diversify Loudeye’s revenue mix and increase future earnings potential by accessing existing corporate budgets for training, product marketing, sales support, corporate communications, customer service, public relations and travel.”
“Activate built its business on technological leadership and customer service, as our more than 300 customers will attest,” said Dennis Shepard, Activate President. “Loudeye’s complementary digital media expertise and financial resources will enable Activate to accelerate the deployment of new and upgraded services, become more aggressive in our marketing activities and shorten the path to profitability.”
Activate’s customers include Microsoft, EMC, Compaq, Safeco, and Adobe. Resellers include Carson Thomson, Genesys, Intercall, Street Fusion, and VSPAN. Founded in 1997, Activate generated revenues of $7.7 million in 2000. Loudeye expects that Activate will generate revenues of between $8 million and $9 million for the full year 2001, growing to approximately $12 million in 2002.
Approximately 85 of Activate’s employees will remain with the combined entity in key roles such as production, operations, customer service and support, sales, and marketing.
Customers of both companies will gain access to an expanded range of digital media services and applications, delivered from a more efficient, single company with an enhanced technology base, combined experience, and reputation for unrivaled customer service. Activate’s customers will also benefit from Loudeye’s commitment to advance Activate’s technological and market leadership position.
The acquisition of Activate, theDial, and Addition Systems are aimed at bolstering Loudeye’s private-label Internet radio product, dubbed Loudeye Radio, announced at the at the NAB Radio Show earlier this month.